South Korea promises all-out efforts to boost exports, attract tourists

SEOUL - South Korea’s government on Thursday promised to make efforts to boost exports and attract tourists as the statistics agency released a mixed set of data for January that showed

gloomy prospects for the economy.

Finance Minister Choo Kyung-ho said at a meeting of officials that the likelihood of a quick export recovery was limited, but that government ministries would do their best to achieve a goal of averting a decline in shipments to other markets.

He also said the government would make efforts to attract more foreign tourists, noting that arrivals so far in 2023 have recovered to about 40 per cent of the levels seen before the Covid-19 pandemic started in 2020.

Reflecting the sense of urgency within the government, South Korea’s trade minister convened a separate emergency meeting of officials from almost all ministries to press for more exports.

A statement quoted Minister of Trade, Industry and Energy Lee Chang-yang as urging participants to “find realistic ways and put every ounce of energy” to increase exports.

South Korea’s official forecast is for exports to drop 4.5 per cent in 2023, compared with 2022. Exports for January and February have already posted a 12 per cent decline over a year earlier.

Statistics Korea data showed Asia’s fourth-largest economy could be headed for a recession, with the cyclically adjusted coincident index falling in January for a fourth consecutive month.

Industrial output rose on the month but plunged on the year, while retail sales decreased for a third consecutive month, the data showed.

The trade-reliant economy contracted by an estimated 0.4 per cent in the fourth quarter of 2022 from the previous quarter as exports collapsed. REUTERS